Consumers drawn to personalized digital banking: Cisco

November 13, 2014

CHICAGO (11/14/14)--If credit unions ever doubt their commitments to personalized digital service, getting to know their members or helping members reach financial goals, they should look no further than a recent study from Cisco, which reaffirms that consumers, and particularly millennials, want these exact services in their financial institutions.

The global study, which polled more than 7,000 consumers across 12 countries, found that 65% of all U.S. respondents would switch financial institutions if their needs in terms of personal digital services weren't being met.

Of the 603 U.S. consumers polled, 41% of Generation X consumers, or those between the ages of 35 and 54, and 36% of baby boomers--between the ages of 55 and 64--said their bank does not understand their needs.

Further, 43% said their bank does not know them and, consequently, cannot deliver personalized service. And nearly a third of consumers plan to find a new financial institution because they feel their current institution is not helping them reach their most important financial goals.

"The research findings indicate that it isn't only millennials and Generation Y that respond to technology offerings from financial institutions," said Cisco in a press release. "Consumers from all age groups affirmed their desire for technology that opens the opportunity for personalized anytime, anywhere service in their banking relationships."

The study also uncovered the specific types of digital services consumers are looking for in their financial institutions, including:

Videoconferencing: 54% of U.S. respondents look for remote-advice delivery outside the traditional branch. The top types of advice consumers look for through this service are financial planning, problem resolution, stock and funding picks, selecting bank products and insurance policy advice;

Mobile payments: 72% of those polled said they would use a mobile payment system if it had the capabilities they needed; 15% said they would definitely start an account to access mobile payment technology; and the top reasons that consumers decide to use mobile payment services are for more security and ease of use; and

martwatch applications: Nearly half of respondents, regardless of age, are interested in smartwatch applications so that they can check account balances; receive alerts, such as to help avoid overdraft fees; transfer funds between accounts; pay for an item in a store or physical location; or receive and redeem special offers or promotions.

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